SPJPE'S AMENDMENTS TO THE EPIRA

1.0 NON-RECOVERY OF STRANDED DEBTS AND CONTRACT COSTS OF ALL INDUSTRY PLAYERS

2.0 LOWERING THE THRESHOLD LEVEL OF PRIVATIZING THE TOTAL CAPACITY OF GENERATION ASSETS OF NPC IN LUZON AND VISAYAS FROM 70% TO 50%. SAME WITH THE TRANSFER OF THE MANAGEMENT AND CONTROL OF THE TOTAL ENERGY OUTPUT OF POWER PLANTS UNDER CONTRACT WITH NPC TO THE IPP ADMINISTRATORS WHICH WAS LOWERED FROM 70% TO 50%- These conditions are needed for the immediate implementation of open access

3.0 FRANCHISE TAXES IMPOSED BY LOCAL GOVERNMENT UNITS SHALL BE LIMITED ONLY TO THE DSITRIBUTION AND WHEELING CHARGES OF THE DISTRIBUTION UTILITIES WHICH ARE PASSED ON TO THE END-USERS.

4.0 ERC SHALL ENSURE THE ADEQUATE PROTECTION AND PROMOTION OF THE INTERESTS OF THE ELECTRICITY CONSUMERS AND WILL UPHOLD THEIR BASIC RIGHTS WHICH WERE SPELLED OUT IN THE PROPOSED MEASURE

5.0 THERE SHALL BE PUBLIC HEARINGS, NOT CONSULTATIONS, ON ALL APPLICATIONS FOR RATE INCREASE AND ON ANY ISSUE WHICH WILL AFFECT PRIVATE RIGHTS OR IMPOSE OBLIGATIONS OR WILL RESULT IN ANY INCREASE IN THE PRICE OF ELECTRICITY TO THE CONSUMERS.

6.0 THE ONE PERCENT ADMINISTRATIVE USE OF ELECTRICITY BY DISTRIBUTION UTILITIES SHALL BE REMOVED AS PART OF THE SYSTEM LOSS CHARGE THAT MAY BE PASSED ON TO THE END-USERS. This should be treated as part of necessary operating expenses.

7.0 ERC IS MANDATED TO TAKE MEASURES FOR THE PROPER ALLOCATION AND REDUCTION OF SYSTEM LOSS BY REVIEWING ALLOWABLE SYSTEMS LOSS CAPS PRESCRIBED IN SECTION 10 OF RA 7832, ANTI ELECTRICITY PILFERAGE ACT OF 1994

8.0 CORPORATE INCOME TAX LEVIED ON NET TAXABLE INCOME OF THE TRANSCO, TRANSCO CONCESSIONAIRE OR OF A DISTRIBUTION UTILITY SHALL NOT BE PASSED ON TO THE END-USERS OF ELECTRICITY WHILE STILL PROVIDING AN ALLOWABLE AFTER TAX RETURN TO THE TRANSCO AND DISTRIBUTION UTILITY COMPARABLE TO OTHER INDUSTRIES WITH SIMILAR INVESTMENT RISK PROFILE